Quick deliveries top agenda for Indian energy hunters

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Subscribe to enjoy similar stories. State-run energy companies on the prowl for foreign assets will focus on projects that are already pumping oil and gas or are about to do so, two people aware of the plans said, after the endless wait for supplies from countries where India has made energy investments in the past prompts a rethink. Though it is far cheaper to invest in foreign exploration and production (E&P) projects in their early stages, the timeline to production is lengthy, something India cannot afford given its galloping energy needs, the people said on the condition of anonymity.

"The need for oil and gas for India is now. So, E&P projects with long gestation periods, although needed, are lesser in the radar for the national oil companies. They are now looking for more of near-producing and producing assets," one of the two people said, adding that of late, the focus has been on taking stakes in assets abroad and more such efforts are expected.

Queries sent to the Union ministry of petroleum and natural gas, ONGC Videsh Ltd and Oil India Ltd remained unanswered till press time. In July, ONGC Videsh Ltd, the overseas investment arm of state-owned Oil and Natural Gas Corp. (ONGC), said it has acquired Norwegian firm Equinor's stake in an Azerbaijan oilfield and an associated pipeline for $60 million.

India's demand for oil and refined products is expected to start declining in a decade or two, even though it may remain higher than the fall in global demand. S&P Global Commodity Insights projects India’s total petroleum product demand at 7.1 million barrels per day (bpd) by 2035, up almost 2 million bpd from 2023. The International Energy Agency says India, currently the world's third largest oil importer, will